Gujarat Gas Ltd. (GUJGASLTD) AI Stock Analysis

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Gujarat Gas Ltd.

(NSE:GUJGASLTD)

Select Model

Rating:70Outperform

Price Target:INR 250.00▲(7.81% Upside)

Action:reiterated

Date:09/06/26

The score is primarily supported by strong financial performance (accelerating FY2026 growth, improved free cash flow, and historically low leverage), partly offset by weak technical trends (below key moving averages with negative MACD). Valuation is moderately supportive due to a reasonable P/E and a 2.21% dividend yield.

Positive Factors

Strong FY2026 Revenue GrowthThe sharp FY2026 revenue acceleration indicates improving demand across Gujarat Gas’s distribution business and customer base. If sustained, stronger volumes can support better network utilization, reinforce the company’s market position, and provide a durable foundation for future earnings growth.

Negative Factors

Sharp FY2026 Debt IncreaseThe large FY2026 increase in total debt is a material change from Gujarat Gas’s previously conservative funding profile. If the higher borrowing level persists, interest obligations and refinancing needs could reduce financial flexibility, constrain capital allocation, and make future earnings more sensitive to leverage.

Gujarat Gas Ltd. (GUJGASLTD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 267.10B
Dividend Yield: 2.84%
Average Volume (3M): 147.89K
Price to Earnings (P/E): 14.6
Beta (1Y): 1.00
Revenue Growth: 81.39%
EPS Growth: 45.62%
Country: India
Employees: 942
Sector: General
Sector Strength: 55
Industry: Regulated Gas

Gujarat Gas Ltd. Business Overview & Revenue Model

Company Description

Gujarat Gas Limited is an Indian company primarily involved in the distribution of natural gas throughout the country. Its extensive infrastructure comprises approximately 33,500 kilometers of gas pipelines and a network of 721 compressed natural gas...

How the Company Makes Money

Gujarat Gas primarily makes money by purchasing natural gas from suppliers and selling it to end customers within its licensed CGD areas, earning a margin between procurement costs and regulated/market-linked selling prices. Its key revenue streams t...

Gujarat Gas Ltd. Financial Statement Overview

Summary

Strong overall fundamentals driven by sharp FY2026 revenue growth (+48.5% YoY) and a large free cash flow step-up (~20.3B; +177.8% YoY), with historically very low leverage and healthy ROE. Key risks are margin/earnings softness versus earlier years, uneven cash conversion in FY2024–FY2025, and a notable FY2026 debt increase (~32.4B vs ~1.5B in FY2025) that warrants monitoring.

Income Statement

72Positive

Balance Sheet

86Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	227.76B	236.14B	164.87B	156.90B	167.59B	164.56B
Gross Profit	40.83B	37.35B	32.65B	31.34B	34.86B	30.19B
EBITDA	30.69B	35.91B	19.32B	18.97B	24.27B	21.13B
Net Income	18.97B	20.19B	11.48B	11.44B	15.28B	12.87B
Balance Sheet
Total Assets	0	275.46B	126.51B	116.92B	109.27B	95.87B
Cash, Cash Equivalents and Short-Term Investments	13.14B	68.92B	3.59B	9.26B	6.91B	220.00M
Total Debt	0	32.43B	1.50B	1.50B	1.52B	6.29B
Total Liabilities	-188.58B	86.88B	41.61B	39.69B	38.99B	39.57B
Stockholders Equity	188.58B	184.39B	84.90B	77.22B	70.28B	56.30B
Cash Flow
Free Cash Flow	7.30B	20.29B	10.54B	7.97B	12.89B	2.95B
Operating Cash Flow	10.21B	29.82B	18.06B	16.34B	23.75B	16.62B
Investing Cash Flow	-9.53B	-26.14B	-19.21B	-8.79B	-10.39B	-12.94B
Financing Cash Flow	-499.70M	-1.62B	-4.74B	-5.14B	-6.78B	-6.28B

Gujarat Gas Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price231.90

Price Trends

50DMA231.03Positive

100DMA249.34Negative

200DMA282.28Negative

Market Momentum

MACD0.32Negative

RSI55.99Neutral

STOCH79.42Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GUJGASLTD, the sentiment is Neutral. The current price of 231.90 is above the 20-day moving average (MA) of 220.52, above the 50-day MA of 231.03, and below the 200-day MA of 282.28, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 79.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:GUJGASLTD.

Gujarat Gas Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:GUJGASLTD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:IGL	76Outperform	INR 199.15B	19.93	―	3.34%	14.62%	-37.35%
IN:MGL	75Outperform	INR 114.45B	17.35	―	2.59%	13.57%	-32.51%
IN:GUJGASLTD	70Outperform	INR 217.58B	14.63	―	2.84%	81.39%	45.62%
IN:GSPL	68Neutral	INR 151.74B	17.13	―	1.86%	―	―
IN:GAIL	65Neutral	INR 1.23T	9.79	―	2.92%	10.38%	15.68%
IN:ATGL	60Neutral	INR 632.34B	98.53	―	0.04%	23.72%	2.60%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:GUJGASLTD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:GUJGASLTD	Gujarat Gas Ltd.	231.90	-105.94	-31.36%
IN:ATGL	Adani Total Gas Ltd.	574.95	-46.88	-7.54%
IN:GAIL	GAIL (India) Limited	187.50	8.37	4.67%
IN:GSPL	Gujarat State Petronet Limited	268.95	-34.70	-11.43%
IN:IGL	Indraprastha Gas Limited	142.25	-63.17	-30.75%
IN:MGL	Mahanagar Gas Ltd	1158.65	-44.65	-3.71%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

Gujarat Gas Ltd. AI Stock Analysis